Euro Ready to Tumble

Yesterday?s commentary noted that “the consolidation since is a 4th wave and a drop under 1.3504 would complete 5 waves down from 1.3609. We will look for consolidation/bounce following a drop under 1.3609 in order to align with the downtrend.”

The EURUSD dropped under 1.3504 and the consolidation that we were looking for occurred in 3 waves back to 1.3512. As long as price is below 1.3512, our working assumption is that either a 3rd wave or a C wave is headed lower. Measured objectives are at the 100% of 1.3680-1.3462/1.3609 at 1.3391 and the 161.8% extension at 1.3256.